Today to start the realization of a personal project, for a real estate purchase or to face financial contingencies, the use of bank credit is an effective solution. However, be aware that it is not always easy to get a loan from the bank. Indeed, today, banking establishments are more and more demanding. So, to help you better prepare your loan, let’s see in this article the different conditions for borrowing from the bank.
Present a considerable personal contribution
Most banking institutions require a personal contribution from the borrower among the conditions for obtaining a loan. Most often, this contribution is essential especially in the context of mortgage. Generally, it should represent between 15 to 20% of the sum borrowed. However, not all banks always require the presentation of a personal contribution. For example, on the fast online credit list in Belgium you can find loans without down payment.
Have fixed and regular income
Among the bank’s first concerns, the financial situation is a priority. To assess this situation, it will then take into account your income. Your borrowing profile will be convincing if you have fixed and regular income. Also, the bank will take into account your different expenses and your repayment capacity. In fact, if you have too many monthly expenses, your remaining living will be low and you will no longer be able to easily repay your loan.
Be professionally stable
Also, professional stability is also considered by the bank to grant a loan. Indeed, an open-ended contract will be more reassuring for the bank compared to a fixed-term contract or an interim contract. In fact, many banks will refuse to grant credit to an employee on a fixed-term contract. Except in the case where you plan to borrow as a couple and your spouse presents a reassuring contract for the bank such as the official contract established.
Have a low debt ratio
The debt ratio is a condition for granting credit. However, there is no specific maximum prescribed by law. Thus, it will be up to the credit organization to specify the debt ratio acceptable to the borrower. Most often, the bank will also calculate your debt capacity based on your other credits. So, to be sure to get your loan easily, it is better to end your previous credits or consider making a loan repurchase.
Be young and healthy
Theoretically, the health of the borrower is not really a condition for obtaining the bank loan. However, a young and healthy borrower is most likely to get credit because they have the capacity to repay. Also, this is the reason why borrower insurance is required by the bank. It is a guarantee of repayment even in the face of possible unforeseen events such as dismissal, illness resulting in incapacity or also the death of the borrower.